How IT Companies Performed This Q3 Q3 results of HCL Technologies, Infosys, Wipro, and TCS, indicate resilient performance amid strong deals
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In the third quarter earnings, IT companies showed mixed results as most recorded a decline in profit.
HCL Technologies
Consolidated net profit of HCL Technologies, increased by 6.2% year-on- year (YoY) from INR 4,096 crore in the year-ago period. Whereas, its consolidated revenue from operations jumped by 6.5% on year from INR 26,700 crore in Q3FY23. Sequentially there is a 13.5% rise in its consolidated net profit to INR 4,350 crore in Q3 FY24 against INR 3,832 crore in Q2FY24. The company's revenue increased by 6.65% QoQ to INR 28,446 crore in the quarter under review.
The growth was led by the IT giant's telecommunications, media, publishing and entertainment segment which grew by 25.9% QoQ. The manufacturing sector was the second-largest contributor to the company's growth with a 7.6% expansion on a sequential basis. Retail and CPG grew 2.9% sequentially.
Infosys
Infosys reported a 1.7% sequential fall in its consolidated net profit for Q3FY24 at INR 6,106 crore. In Q2FY24, Infosys reported a profit of INR 6,212 crore. Sequentially, the consolidated revenue was down by 0.4%. It reported a 7.3 per cent fall YoY in net profit and the IT major's consolidated revenue was up 1.3 % on year to INR 38,821 crore from INR 38,318 crore.
"This quarter has been, I think, very strong, at $3.2 billion. If you look at the nine months, this is the highest ever value of deal wins that we've had" said Salil Parekh, CEO and MD.
Wipro
Wipro reported a 12 per cent YoY fall in net profit at INR 2,694 crore for the third quarter of the current financial year. Consolidated revenue stood at INR 22,205 crore in Q3, indicating a 4.4% decrease compared to the revenue of ₹23,229 crore reported in the corresponding period last year. Sequentially, revenue also saw a 1.4% drop.
"In a seasonally soft quarter, deal booking momentum remained strong. Our large deals recorded 20% year-to-date growth. Further, we are starting to see early signs of a return to growth in consulting, as demonstrated by the double-digit growth in order bookings in our Capco business," said Thierry Delaporte, CEO and Managing Director of Wipro.
TCS
Tata Consultancy Services Ltd reported a 1.96 per cent YoY rise in consolidated net profit at INR 11,097 crore for the December quarter compared with INR 10,883 crore in the same quarter last year. The firm said its consolidated revenue for the quarter rose 4.04 per cent YoY to INR 60,583 crore from INTR 58,229 crore in the same quarter last year. Operating margin for the quarter stood at 25 per cent, up 50 basis points YoY. Net Margin came in at 19.4 per cent and attrition rate for IT Services stood at 13.3 per cent.
K Krithivasan, chief executive officer and MD, said, "Our strong performance in a seasonally weak quarter buffeted by macro-economic headwinds, demonstrates the strength of our business model with a well-diversified portfolio and a customer-centric strategy. We are seeing strong deal momentum across markets resulting in a solid order book providing visibility into our long-term growth. We are seeing tremendous interest in Generative AI and are leading the innovation and exploratory efforts for our customers in this area."
